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Income taxes	6 Months Ended
Jun. 30, 2021
Income taxes	NOTE 11 – Income taxes: In the second quarter of 2021, Teva recognized a tax expense of $98 million, on pre-tax income of $308 million. In the second quarter of 2020, Teva recognized a tax benefit of $104 million, on pre-tax loss of $51 million. Teva’s tax rate for the second quarter of 2021 was mainly affected by impairments, amortization and interest expense disallowance. In the first six months of 2021, Teva recognized a tax expense of $159 million, on pre-tax income of $451 million. In the first six months of 2020, Teva recognized a tax benefit of $163 million, on pre-tax loss of $84 million. Teva’s tax rate for the first six months of 2021 was mainly affected by impairments, amortization, legal settlements and interest expense disallowance. The statutory Israeli corporate tax rate is 23% in 2021. Teva’s tax rate differs from the Israeli statutory tax rate, mainly due to generation of profits in various jurisdictions in which tax rates are different than the Israeli tax rate, tax benefits in Israel and other countries, as well as infrequent or non-recurring items. Teva filed a claim seeking the refund of withholding taxes paid to the Indian tax authorities in 2012. Trial in this case is scheduled to begin in September 2021. A final and binding decision against Teva in this case may lead to an asset write off of $ 139 million. The Israeli tax authorities issued tax assessment decrees for 2008-2012 and 2013-2016, challenging the Company’s positions on several issues. Teva has protested the 2008-2012 and 2013-2016 decrees before the Central District Court in Israel. The Company believes it has adequately provided for these items, however, adverse results could be material.

Income taxes

6 Months Ended

Jun. 30, 2021

Income taxes

NOTE 11 – Income taxes:

In the second quarter of 2021, Teva recognized a tax expense of $98 million, on

pre-tax

income of $308 million. In the second quarter of 2020, Teva recognized a tax benefit of $104 million, on

pre-tax

loss of $51 million. Teva’s tax rate for the second quarter of 2021 was mainly affected by impairments, amortization and interest expense disallowance.

In the first six months of 2021, Teva recognized a tax expense of $159 million, on

pre-tax

income of $451 million. In the first six months of 2020, Teva recognized a tax benefit of $163 million, on

pre-tax

loss of $84 million.

Teva’s tax rate for the first six months of 2021 was mainly affected by impairments, amortization, legal settlements and interest expense disallowance.

The statutory Israeli corporate tax rate is 23% in 2021. Teva’s tax rate differs from the Israeli statutory tax rate, mainly due to generation of profits in various jurisdictions in which tax rates are different than the Israeli tax rate, tax benefits in Israel and other countries, as well as infrequent or

non-recurring

items.

Teva filed a claim seeking the refund of withholding taxes paid to the Indian tax authorities in 2012. Trial in this case is scheduled to begin in September 2021.

A final and binding decision against Teva in this case may lead to an asset write off of $

139

million.

The Israeli tax authorities issued tax assessment decrees for 2008-2012 and 2013-2016, challenging the Company’s positions on several issues. Teva has protested the 2008-2012 and 2013-2016 decrees before the Central District Court in Israel. The Company believes it has adequately provided for these items, however, adverse results could be material.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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